How is the unemployment rate calculated?

BY Meg Gilliland ON Tue, October 18, 2016

A minor without a job is unemployed, but they’re not counted in official unemployment statistics. That may seem obvious. But did you know that lots of unemployed adults are also not counted?

It turns out that official unemployment in the United States has some strict criteria about who is and isn’t included. For example, a person in jail doesn’t factor. Neither does a person who wants a job, but hasn’t taken measures to obtain work within the past four weeks.

To learn the ins and and outs of the unemployment rate in the U.S., check out our latest video in Principles of Macroeconomics. It’ll give you a solid foundation as we dig deeper into Unemployment and Labor Force Participation in the coming weeks.

Happy learning!